The introduction of subsidies and tax rebates would benefit the solar market. (Image source: BrightSourceEnergy/|Flickr)Revenue from the global solar industry is set to reach US$137.02bn by 2020, according to Frost & Sullivan’s Global Solar Power Market report

Globally, solar markets earned US$58.84bn in 2013 and the report stated that solar power is becoming a high-growth mainstream energy source in emerging markets.

The Asia-Pacific region dominates the demand for solar photovoltaic (PV), accounting for 46 per cent of the annual installed capacity, added the report.

Africa will continue increase its renewable energy capacity throughout 2014. According to the NPD Solarbuzz Emerging PV Markets Report, the photovoltaic (PV) demand from Africa is expected to reach 2.2 GW, with an upside potential of 6 GW, by 2018.

Pritil Gunjan, energy and environmental industry analyst at Frost & Sullivan, said, ”The global solar power market is benefiting from various incentive schemes like tradable green energy certificates, feed-in-tariffs (FiTs), subsidies and tax rebates for the use of renewable energy for power generation.”

Incentive schemes are, however, heterogeneous with solar PV penetration rates varying widely from one country to the next as they are based on local and regional policies.

The report said that government policies on solar power would determine the market during the forecast period. Specifically, environmental policies and modifications in electricity grids would be responsible for determining electricity prices and extent of solar power uptake.

”Drafting strict clean energy regulations and offering adequate subsidies to the renewable energy sector will be essential,” said Gunjan. ”It is also equally important to maintain clarity in incentive guidelines for solar power so that project developers, investors and customers are not misled and can make proper investment decisions.”